San Diego Gas and Electric promised to invest nearly $300 million in a wind farm in Montana. However, there have been problems in state court over the protection of eagles in the region. A subsidy to the Spanish energy provider, NaturEner, has left SDG&E in a pickle because NaturEner did not take steps to protect eagles that flew near the large wind turbines. Well, this is what SDG&E is alleging in court that NaturEner didn’t hold up its end of the bargain. Now, SDG&E wants out of the deal.
SDG&E believes that NaturEner lied when asking for investment in the project. The risk to the protected birds in the region was understated by NaturEner, SDG&E alleges, and that was what induced SDG&E to invest in the project.
At this point, the court is in the midst of interpreting the contract between the two companies. The loss of wind power in the area could drive energy prices back up if NaturEner loses funding and cannot get new financial assistance.
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